Indian Bank Q2 net profit rises 15% to Rs 412 crore

State-owned Indian Bank on October 22 reported a 15 percent rise in net profit at Rs 412.28 crore for the second quarter ended September, despite increase in provisions for bad loans.

The bank's net profit in July-September quarter of 2019-20 stood at Rs 358.56 crore. The results are not strictly comparable with that of previous year's as Kolkata-based Allahabad Bank merged with Indian Bank on April 1, 2020.

Indian Bank's total income rose to Rs 11,669.11 crore during September quarter this year from Rs 6,045.32 crore in the same period of the previous fiscal, it said in a regulatory filing. On asset quality front, gross non-performing assets (NPA) rose to 9.89 percent of gross advances at the end of September 2020 from 7.20 percent a year ago.

However, net NPA declined to 2.96 percent of the advances at the end of second quarter of this fiscal from 3.54 percent a year ago. The bank's provisioning for bad loans and contingencies rose to Rs 2,284.11 crore during July-September quarter from Rs 909.36 crore in the corresponding quarter a year ago.

Provisioning for bad loans alone doubled to Rs 1,880.19 crore at the end of September 2020 from Rs 720.90 crore a year ago. Provision coverage ratio rose to 84.39 percent as on September 30, 2020.